ACA Penalty Response Consultation Services – Letter 226J, Letter 5699

Passport Software provides consultation services for ACA penalty notices and has helped many clients completely avoid, or greatly reduce, penalties.

A free 30-minute assessment can help determine if you could benefit from our penalty response support services.

• Penalties due to late filing of the 1094-C and 1095-C or failure to furnish forms to employees might be waived if a company provides “reasonable cause” (circumstances beyond a filer’s control). Also, the filer must have made a reasonable attempt to file before and after late filing.
• Or, your Employer Mandate penalty might be waived if you can demonstrate to the IRS that you made a qualifying offer of coverage even though an employee accidentally reported that you didn’t.
• ACA penalties may be waived or reduced if they resulted from errors in reporting.

If your company has received an IRS notification of possible ACA penalties, call 800-979-7900 to learn more about how we can ease the burden of responding to the IRS.

And, if you are overwhelmed or struggling with ACA compliance management, we can help answer ACA-related questions, and our ACA Software and Services can streamline year-round compliance.

Free Assessment – Penalty Reduction/Elimination

Letter 226J

The Employer Mandate penalty occurs when an employer missed an offer of Minimum Essential Coverage or the offer was unaffordable/didn’t meet Minimum Value – whichever penalty is greater will apply.

Some companies are now receiving IRS Letter 226J that notifies ALEs that they may owe an Employer Shared Responsibility (or Employer Mandate) Payment based on information from Forms 1094-C and 1095-C filed by the ALE and the individual income tax returns filed by the ALE’s employees.

Letter 5699

Other companies have received IRS Letter 5699, the letter that the IRS uses to makes initial contact regarding missing data. Essentially, ALEs are requested to transmit their 1094-C/1095-Cs within 30 days and/or provide an explanation.

Late Filing or Failure to File

Late filing of the 1094-C and 1095-C forms can result in steep penalties depending on the number of forms not filed on time. An additional penalty is incurred for not furnishing 1095-Cs to employees.

We have also helped many companies file that failed to do so in prior reporting years. Whatever your situation, our friendly experts are here to help.

Compliance

In order to maintain compliance under the Affordable Care Act, Applicable Large Employers (ALEs) should understand the IRS requirements for compliance thoroughly.

Having accurate employee counts and effectively tracking each employee’s full or part-time status is crucial. Document employee status data on a monthly basis as well as offers of coverage. When offering coverage to qualifying employees or dependents, the health plan must meet minimum essential coverage, minimum value, and affordability standards.

Forms 1094-C and 1095-C must be accurate, filed/distributed before the required deadlines. And, make sure to analyze whether or not ownership of multiple companies qualifies as having an aggregated group, as reporting with multiple EINs will affect compliance criteria.

Respond promptly to an IRS penalty notification or warning letter, and seek expert consulting if you are unsure of how to proceed.

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